Bidding War Intensifies for Warner Bros. Discovery

Warner Bros. Discovery (A) US9344231041

The strategic battle determining the future of media conglomerate Warner Bros. Discovery (WBD) is reaching a critical juncture. Competing takeover proposals from Netflix and Paramount Skydance have placed shareholders at the center of a high-stakes corporate tug-of-war, with the company's leadership expressing a clear preference.

Although the acquisition contest, ongoing since late 2025, has driven significant long-term volatility for the stock, short-term trading is currently dominated by uncertainty. Shares closed Friday's session at €24.08, a level approximately 17% below the 52-week high. The equity has declined just over 15% since the start of the year, indicating the market is reassessing the complexity and risks associated with the competing proposals.

Netflix Revises Terms for Key Asset Purchase

In a move to provide greater certainty, Warner Bros. Discovery and Netflix amended their agreement on Tuesday, January 20. The planned acquisition of WBD's streaming and studio division by Netflix will now be conducted as an all-cash transaction. The offer price remains unchanged at $27.75 per Warner Bros. Discovery share.
This adjustment eliminates the share price risk of Netflix stock for WBD investors. To maintain momentum, management promptly filed initial documentation with U.S. regulators. The objective is for shareholders to vote on this partial divestiture as early as April 2026.

Paramount Skydance Extends Hostile Bid Deadline

Merely two days later, Paramount Skydance countered this development. The rival suitor extended the deadline for its competing, hostile bid to acquire the entire corporation until February 20, 2026. While its proposed enterprise valuation of $108.4 billion appears higher on the surface, the WBD board has issued a sharp rejection.
In an official statement, the leadership labeled the offer as "inferior," citing the substantial risks associated with a highly leveraged buyout. Furthermore, investor support for the Paramount bid seems limited thus far; fewer than 7% of shareholders have tendered their shares to the company.

Key Dates on the Horizon

The coming weeks are set to define the path forward. The extended deadline for the Paramount Skydance offer expires on February 20, 2026. Shortly thereafter, around February 26, Warner Bros. Discovery is scheduled to release its quarterly earnings, which should temporarily refocus attention on operational performance. The final decision is anticipated in April, when shareholders are expected to vote on the all-cash deal with Netflix.

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